​​ENIP-3: The $Kinto Mining Program

ABSTRACT

This Proto-governance proposal introduces the $KINTO Mining Program, the program that is designed to reward and promote active participation in the network.

CATEGORY(S)

Core

MOTIVATION

The most important goal of $KINTO is to ensure that the network is owned by its users. The Kinto Foundation is proposing a Participation Rewards Program that will allocate 2,000,000 tokens, representing 20% of the initial total token supply. An additional 3M tokens will be distributed over the following years, up to a total of 5M tokens, or 33% of the max supply.

RATIONALE

The mining program will reward capital allocations to the Kinto network, incentivizing long-term deployment of capital. The more capital that is deployed and the longer that it remains in Kinto, the higher the rewards.

The program is also flexible enough to accommodate Protocol level boosts and user level boosts that are decided by the DAO. Engen Users receive the first user level boost.

SPECIFICATIONS

• The Mining Program lasts for approx. 10 years. Rewards are front loaded and slowly decrease over time.
• Between 20% and 33% of the max token supply will be allocated to the mining program.
• The mining program rewards active users who deposit capital and app developers whose contracts receive that capital.
• Prioritize active allocation of capital to protocols; idle capital receives less rewards.
• KINTO Rewards are calculated off-chain and assigned on-chain weekly. Users and developers can claim their rewards into their wallet at any time from their dashboard.
• The longer capital is deployed, the more Kinto tokens it is earning.
• The more capital is deployed, the more Kinto tokens it is earning.
• Engen founding members who hold $ENGEN Tokens will receive a permanent 15% bonus on their rewards.

STEPS TO IMPLEMENT

- First, the Kinto Constitution (ENIP-1) must be approved and the DAO created.

- Then, the Kinto Token (ENIP-2) must be approved and ratified.

- Once this proposal is approved, Kinto will deploy the required contracts and mint the corresponding tokens to start the mining program on July 1st. If approved, on July 1st all the rewards accrued during the month of June will be released.

TIMELINE

Users will be able to claim their June rewards on July 1st on the Kinto website. Mining program will then remain active until explicitly stopped via a government proposal. It is expected that it will run for 10 years.

OVERALL COST

The Kinto Foundation will be responsible for the development and deployment of the smart contracts and products required to facilitate the creation of the mining program.

LINKS

You can read the full details of the proposal here:

https://docs.kinto.xyz/kinto-the-safe-l2/reward-programs/mining-program